Discounted Cash Flow (DCF) Analysis Levered

The Procter & Gamble Company (PG)

$146.11

+2.32 (+1.61%)
All numbers are in Millions, Currency in USD
Stock DCF: 231.54 | 146.11 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 65,05866,83267,68470,95076,11879,183.8482,373.1785,690.9689,142.3892,732.81
Revenue (%)
Operating Cash Flow 12,75314,86715,24217,40318,37117,900.4018,621.3819,371.4120,151.6420,963.30
Operating Cash Flow (%)
Capital Expenditure -3,384-3,717-3,347-3,073-2,787-3,753.46-3,904.64-4,061.91-4,225.51-4,395.70
Capital Expenditure (%)
Free Cash Flow 9,36911,15011,89514,33015,58414,146.9414,716.7515,309.5015,926.1316,567.59

Weighted Average Cost Of Capital

Share price $ 146.11
Beta 0.386
Diluted Shares Outstanding 2,601
Cost of Debt
Tax Rate 18.79
After-tax Cost of Debt 1.25%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.711
Total Debt 32,619
Total Equity 380,032.11
Total Capital 412,651.11
Debt Weighting 7.90
Equity Weighting 92.10
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 65,05866,83267,68470,95076,11879,183.8482,373.1785,690.9689,142.3892,732.81
Operating Cash Flow 12,75314,86715,24217,40318,37117,900.4018,621.3819,371.4120,151.6420,963.30
Capital Expenditure -3,384-3,717-3,347-3,073-2,787-3,753.46-3,904.64-4,061.91-4,225.51-4,395.70
Free Cash Flow 9,36911,15011,89514,33015,58414,146.9414,716.7515,309.5015,926.1316,567.59
WACC
PV LFCF 12,969.6712,918.4712,867.4812,816.6912,766.10
SUM PV LFCF 67,195.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.44
Free cash flow (t + 1) 16,898.95
Terminal Value 692,579.73
Present Value of Terminal Value 557,359.57

Intrinsic Value

Enterprise Value 624,554.61
Net Debt 22,331
Equity Value 602,223.61
Shares Outstanding 2,601
Equity Value Per Share 231.54